UPDATE: Piper Jaffray Reiterates Overweight Rating, Raises PT on Ocwen Financial

In a report published Monday, Piper Jaffray & Co. reiterated its Overweight rating on Ocwen Financial

, and raised its price target from $26.00 to $32.50. Piper Jaffray noted, “We recently met with OCN Chairman Bill Erbey and CFO John Britti. The meeting was highlighted by a discussion of OCN's servicing pipeline, competitive advantage, operating margins and tax rate initiatives. Due to the success of its tax initiatives, we are reducing our 2013E effective tax rate to 10% from 35% and raising our 2013E core EPS to $2.32 from $1.67. As such, and our price target is increased to $32.50 from $26 based on 14.0x 2013E core EPS. We note our 2013E numbers do not include any incremental acquisitions. Overall, we believe OCN is well positioned to continue to grow its servicing portfolio and drive value through the entire OCN ecosystem.” Ocwen Financial closed on Friday at $24.32.